Addressing and Prevention of High Default Rates
Campbellsville University’s goal to manage cohort default rates is to maintain less than 15 percent for each of the three most recent cohort years. When reaching that goal, we will be allowed to disburse aid in a single disbursement for loans that are originated in a single semester, a single trimester or a period of four months in length. There will also be an exemption of the 30-day delay of the first disbursement of a loan for first time, first year, undergraduate borrowers.
A contract with Kentucky Higher Education Assistance Authority helps assist with cohort default rate efforts to ensure that our default rate remains lower than 15 percent. The efforts include default prevention where students that are already in our cohort are counseled on their repayment, deferment and forbearance options. Getting the borrower into successful repayment terms is the main objective in this service.
Campbellsville University desires to remain eligible to participate in the Direct Loan and Federal Pell Grant programs every year and this is determined by consistent rates below 15 percent.